KKR REAL ESTATE FINANCE TRUS (KREF) Stock Fundamental Analysis
USA - NYSE:KREF - US48251K1007 - REIT
9.5 USD
+0.06 (+0.64%)
9.5 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to KREF. KREF was compared to 67 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. KREF has a bad profitability rating. Also its financial health evaluation is rather negative. KREF is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year KREF was profitable.
KREF had a positive operating cash flow in the past year.
KREF had positive earnings in 4 of the past 5 years.
Each year in the past 5 years KREF had a positive operating cash flow.
1.2 Ratios
KREF has a worse Return On Assets (-0.66%) than 71.64% of its industry peers.
The Return On Equity of KREF (-3.58%) is worse than 70.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.66% | ||
| ROE | -3.58% | ||
| ROIC | N/A |
ROA(3y)-0.1%
ROA(5y)0.53%
ROE(3y)-0.63%
ROE(5y)2.49%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
In the last couple of years the Profit Margin of KREF has declined.
KREF's Operating Margin has declined in the last couple of years.
KREF has a Gross Margin of 30.70%. This is in the better half of the industry: KREF outperforms 61.19% of its industry peers.
KREF's Gross Margin has declined in the last couple of years.
KREF does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 30.7% |
OM growth 3Y-50.23%
OM growth 5Y-29.01%
PM growth 3Y-62.88%
PM growth 5Y-41.56%
GM growth 3Y-20.56%
GM growth 5Y-6.79%
2. Health
2.1 Basic Checks
KREF does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for KREF has been reduced compared to 1 year ago.
KREF has more shares outstanding than it did 5 years ago.
The debt/assets ratio for KREF has been reduced compared to a year ago.
2.2 Solvency
KREF has an Altman-Z score of -0.02. This is a bad value and indicates that KREF is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of -0.02, KREF perfoms like the industry average, outperforming 58.21% of the companies in the same industry.
KREF has a debt to FCF ratio of 48.47. This is a negative value and a sign of low solvency as KREF would need 48.47 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 48.47, KREF is in the better half of the industry, outperforming 71.64% of the companies in the same industry.
KREF has a Debt/Equity ratio of 3.90. This is a high value indicating a heavy dependency on external financing.
KREF has a Debt to Equity ratio of 3.90. This is comparable to the rest of the industry: KREF outperforms 59.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.9 | ||
| Debt/FCF | 48.47 | ||
| Altman-Z | -0.02 |
ROIC/WACCN/A
WACC6.77%
2.3 Liquidity
A Current Ratio of 0.66 indicates that KREF may have some problems paying its short term obligations.
KREF has a Current ratio of 0.66. This is in the better half of the industry: KREF outperforms 64.18% of its industry peers.
A Quick Ratio of 0.66 indicates that KREF may have some problems paying its short term obligations.
The Quick ratio of KREF (0.66) is better than 64.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
KREF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 128.46%, which is quite impressive.
Measured over the past years, KREF shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -34.56% on average per year.
Looking at the last year, KREF shows a very negative growth in Revenue. The Revenue has decreased by -21.32% in the last year.
The Revenue has been growing by 16.21% on average over the past years. This is quite good.
EPS 1Y (TTM)128.46%
EPS 3Y-55.99%
EPS 5Y-34.56%
EPS Q2Q%97.45%
Revenue 1Y (TTM)-21.32%
Revenue growth 3Y26.7%
Revenue growth 5Y16.21%
Sales Q2Q%-25.38%
3.2 Future
Based on estimates for the next years, KREF will show a very strong growth in Earnings Per Share. The EPS will grow by 44.23% on average per year.
The Revenue is expected to decrease by -11.84% on average over the next years. This is quite bad
EPS Next Y152%
EPS Next 2Y68.7%
EPS Next 3Y44.23%
EPS Next 5YN/A
Revenue Next Year-19.58%
Revenue Next 2Y-11.08%
Revenue Next 3Y-11.84%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 25.68, which means the current valuation is very expensive for KREF.
KREF's Price/Earnings ratio is in line with the industry average.
KREF is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.01 indicates a reasonable valuation of KREF.
KREF's Price/Forward Earnings ratio is in line with the industry average.
KREF is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.87, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.68 | ||
| Fwd PE | 11.01 |
4.2 Price Multiples
KREF's Price/Free Cash Flow ratio is rather cheap when compared to the industry. KREF is cheaper than 88.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.13 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
KREF's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as KREF's earnings are expected to grow with 44.23% in the coming years.
PEG (NY)0.17
PEG (5Y)N/A
EPS Next 2Y68.7%
EPS Next 3Y44.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 8.05%, KREF is a good candidate for dividend investing.
With a Dividend Yield of 8.05, KREF pays less dividend than the industry average, which is at 10.94. 83.58% of the companies listed in the same industry pay a better dividend than KREF!
KREF's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.05% |
5.2 History
The dividend of KREF decreases each year by -2.88%.
KREF has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)-2.88%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
The earnings of KREF are negative and hence is the payout ratio. KREF will probably not be able to sustain this dividend level.
DP-202.99%
EPS Next 2Y68.7%
EPS Next 3Y44.23%
9.5
+0.06 (+0.64%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)
Earnings (Next)
Inst Owners61.63%
Inst Owner Change-3.59%
Ins Owners1.71%
Ins Owner Change3.84%
Market Cap623.96M
Analysts81.82
Price Target11.6 (22.11%)
Short Float %7.49%
Short Ratio6.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 8.05% |
Yearly Dividend1.49
Dividend Growth(5Y)-2.88%
DP-202.99%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)46.95%
Min EPS beat(2)44.18%
Max EPS beat(2)49.72%
EPS beat(4)3
Avg EPS beat(4)-33.31%
Min EPS beat(4)-233.84%
Max EPS beat(4)49.72%
EPS beat(8)6
Avg EPS beat(8)-66.11%
EPS beat(12)8
Avg EPS beat(12)-42%
EPS beat(16)11
Avg EPS beat(16)-38.29%
Revenue beat(2)0
Avg Revenue beat(2)-10.2%
Min Revenue beat(2)-12.76%
Max Revenue beat(2)-7.64%
Revenue beat(4)0
Avg Revenue beat(4)-6.56%
Min Revenue beat(4)-12.76%
Max Revenue beat(4)-1.64%
Revenue beat(8)2
Avg Revenue beat(8)-3.79%
Revenue beat(12)5
Avg Revenue beat(12)44.56%
Revenue beat(16)9
Avg Revenue beat(16)59.23%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-59.21%
EPS NQ rev (3m)-55.07%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.45%
Revenue NQ rev (1m)-4.87%
Revenue NQ rev (3m)-8.81%
Revenue NY rev (1m)-3.04%
Revenue NY rev (3m)-5.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.68 | ||
| Fwd PE | 11.01 | ||
| P/S | 1.21 | ||
| P/FCF | 6.13 | ||
| P/OCF | 5.97 | ||
| P/B | 0.5 | ||
| P/tB | 0.5 | ||
| EV/EBITDA | N/A |
EPS(TTM)0.37
EY3.89%
EPS(NY)0.86
Fwd EY9.08%
FCF(TTM)1.55
FCFY16.3%
OCF(TTM)1.59
OCFY16.74%
SpS7.83
BVpS18.88
TBVpS18.88
PEG (NY)0.17
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.66% | ||
| ROE | -3.58% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 30.7% | ||
| FCFM | 19.78% |
ROA(3y)-0.1%
ROA(5y)0.53%
ROE(3y)-0.63%
ROE(5y)2.49%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-50.23%
OM growth 5Y-29.01%
PM growth 3Y-62.88%
PM growth 5Y-41.56%
GM growth 3Y-20.56%
GM growth 5Y-6.79%
F-Score5
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.9 | ||
| Debt/FCF | 48.47 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 279.45% | ||
| Cap/Sales | 0.53% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | -0.02 |
F-Score5
WACC6.77%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)128.46%
EPS 3Y-55.99%
EPS 5Y-34.56%
EPS Q2Q%97.45%
EPS Next Y152%
EPS Next 2Y68.7%
EPS Next 3Y44.23%
EPS Next 5YN/A
Revenue 1Y (TTM)-21.32%
Revenue growth 3Y26.7%
Revenue growth 5Y16.21%
Sales Q2Q%-25.38%
Revenue Next Year-19.58%
Revenue Next 2Y-11.08%
Revenue Next 3Y-11.84%
Revenue Next 5YN/A
EBIT growth 1Y-166%
EBIT growth 3Y-36.94%
EBIT growth 5Y-17.51%
EBIT Next Year-35.74%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-32.09%
FCF growth 3Y1.66%
FCF growth 5Y7.41%
OCF growth 1Y-30.26%
OCF growth 3Y2.03%
OCF growth 5Y7.65%